This is wild!
A contractor that helped build the Obama Presidential Center says the high-profile project has devastated his business, forcing him to shut down operations, lay off 25 union workers, and begin a legal fight over millions of dollars he claims remain unpaid. The dispute is drawing renewed attention to the massive Chicago development and raising fresh questions about how subcontractors were treated during one of the nation’s most expensive presidential center projects.
Mike Owen, owner of Chicago-based Adamson Plumbing Contractors, says years of financial strain tied to work performed at the Obama Presidential Center ultimately pushed his company to the brink.
Rather than risk bankruptcy, Owen says he made the painful decision to close operations and regroup.
“Laying off close to 30 people is something no business owner ever wants to do,” Owen said. “We were backed into a corner.”
Contractor Says Millions Are Still Owed
Marsh-Adamson, the name under which Adamson Plumbing worked on the project, has filed a nearly $2 million mechanic’s lien against the Obama’s Center, claiming it is still owed payment for its work.
A mechanic’s lien is a legal claim contractors can file when they believe they have not received full payment for completed work.
According to Owen, the mechanic’s lien focuses on the portion of the dispute supported by company records, such as outstanding invoices, authorized change orders, and verified labor costs.
He maintains that his company suffered approximately $3.9 million in total losses because of construction delays, repeated project changes, additional labor expenses, and other costs accumulated during the multi-year project.
The plumbing company is not alone.
Several subcontractors have reported financial hardship after working on the Obama Presidential Center, including minority-owned businesses that were expected to benefit from the landmark development. Previous reports indicate one contractor group is pursuing more than $40 million in additional compensation.
Last-Minute Agreement Fell Apart
According to Owen, the company’s financial collapse accelerated just days before the Obama Presidential Center officially opened.
He says Adamson Plumbing agreed to provide two journeyman plumbers for overnight work to help complete final preparations before the grand opening. In exchange, Owen says project managers agreed to release $100,000 from funds already owed to his company.
Emails reviewed by Fox News Digital reportedly showed a representative indicating the payment would be processed through Adamson’s May payment application.
Adamson completed the requested work.
The money, however, did not arrive before the opening ceremony.
Owen says that delay became the tipping point that forced him to suspend company operations on June 25.
He says he accepted the agreement believing both sides were acting in good faith.
“We negotiated it in good faith,” Owen said. “Against my better judgment, I agreed to do the work.”
Without the expected payment, Owen says his company could no longer meet its financial obligations.
Rather than continue operating while sinking deeper into debt, he chose to shut the business down before bankruptcy became unavoidable.
Payment Finally Arrived—But Too Late
Weeks after operations were suspended, Owen says Adamson finally received the promised $100,000 payment, along with roughly $35,000 connected to approved change orders.
By that point, however, the layoffs had already occurred.
The money helped reduce outstanding debt with one supplier but did not provide enough financial relief to reopen the company.
Owen described the payment as arriving far too late to change the outcome.
His business has since moved out of its longtime office, and he is now operating from home while working with attorneys to determine the company’s future.
Legal Battle Now Underway
With negotiations failing to resolve the dispute, Owen has turned the matter over to his legal team.
The $1.72 million mechanic’s lien represents what he believes can be clearly documented through company records.
However, Owen says he still intends to pursue the remainder of the estimated $3.9 million in losses he believes his business suffered during construction.
He says he delayed taking legal action for months because he hoped both sides could reach an agreement without involving the courts.
Now, he believes litigation may be the only remaining option.
Construction Manager Responds
Lakeside Alliance, the construction manager overseeing the Obama Presidential Center, says the project involved approximately 475 contractors and noted that financial closeout work on projects of this size often continues long after construction has finished.
A spokesperson said the company remains committed to resolving outstanding issues but did not specifically address Owen’s allegations, the layoffs, or the mechanic’s lien.
The Obama Foundation also emphasized that subcontractor payments were handled by Lakeside Alliance rather than the foundation itself.
Foundation officials said they have no unresolved financial disputes with the construction manager and pointed to payment practices they say exceeded normal industry standards, including a 15-day payment cycle and, in some cases, accelerated payments before work was completed.
Rising Construction Costs Continue To Draw Attention
The payment dispute comes as the Obama Presidential Center continues to face scrutiny over its soaring construction costs.
The project was originally expected to cost roughly $350 million but later climbed to approximately $830 million before reportedly exceeding $1 billion.
Supporters argue the center will provide long-term educational and economic benefits for Chicago’s South Side.
Critics, however, have questioned the project’s growing price tag and whether financial oversight has kept pace with the expanding budget.
Questions Remain About Taxpayer Protections
The Obama Presidential Center has also faced questions surrounding financial safeguards intended to protect Chicago taxpayers.
Reports indicate a reserve fund expected to total $470 million has received only about $1 million so far.
The center sits on nearly 20 acres of Jackson Park under a 99-year lease that required a one-time payment of $10, adding to ongoing public debate surrounding the project.
Contractor Says Workers Were Overlooked
Owen says watching the Obama Presidential Center celebrate its grand opening made the situation even more frustrating.
The opening featured performances by Bruce Springsteen, Christina Aguilera, John Legend, Bono, and The Edge while, according to Owen, many contractors were still struggling financially behind the scenes.
He questioned why more public attention had not been given to subcontractors and union workers facing layoffs after helping build the landmark project.
Owen also criticized Illinois leaders, including Gov. J.B. Pritzker, for not publicly addressing the payment disputes involving contractors.
At the same time, Owen stopped short of personally blaming former President Barack Obama.
Instead, he believes the Obama Foundation should publicly acknowledge the concerns raised by subcontractors and work toward helping resolve the outstanding disputes.
What Happens Next?
For now, the future of Adamson Plumbing remains uncertain.
Owen says he has closed the company’s office, is working from home, and may ultimately have to seek other employment after spending years building his business.
Meanwhile, the legal dispute over payments at the Obama Presidential Center appears far from over.
As court proceedings move forward, the outcome could determine whether additional subcontractors pursue similar legal action and whether new questions emerge about contractor payments, project oversight, and one of the most expensive presidential center developments ever built in the United States.